You may be tempted to use nontraditional means—like a payday loan—to help you pay your bills. You wouldn’t be alone: According to a 2018 survey, 44 percent of military members use these types of services.2 But you may want to tread carefully. While you were on active duty, the Military Lending Act capped the rates many lenders were allowed to charge at 36 percent. As a veteran, that protection does not apply, and you could be charged as much as 100, or even 500, percent. Those high rates make these types of loans extremely difficult to pay back.
Quick tip: Consider all other options for dealing with difficult bill repayment—like talking to your creditors about repayment plans or extensions or meeting with a credit counselor.